Price Elasticity of Supply Calculation Midpoint Formula Quiz

Calculate the percentage change in quantity when the initial quantity is 100 and the final quantity is 120.

• 30%

• 20%

• 10%

• 50%

If the initial price is $50 and the final price is $55, calculate the percentage change in price.

• 5%

• 10%

• 15%

• 20%

Using the midpoint formula, find the price elasticity of supply when the initial quantity is 80, the final quantity is 100, the initial price is $20, and the final price is $25.

• 2.5

• 0.8

• 0.5

• 1.2

A good has a price elasticity of supply of 0.8. Is the supply elastic or inelastic?

• inelastic

• unitary elastic

• perfectly elastic

• elastic

Explain how the concept of price elasticity of supply applies to the market for crude oil.

• Producers are not affected by price changes in the market for crude oil

• Price elasticity of supply has no impact on the market for crude oil

• The concept of price elasticity of supply measures the responsiveness of quantity supplied to a change in price. In the market for crude oil, if the price elasticity of supply is high, it means that producers can quickly increase production in response to a price increase, indicating a more elastic supply. Conversely, if the price elasticity of supply is low, it means that producers are unable to quickly increase production in response to a price increase, indicating a more inelastic supply.

• The concept of price elasticity of supply measures the demand for crude oil

If the initial quantity is 200 and the final quantity is 180, calculate the percentage change in quantity.

• 5%

• 20%

• 50%

• -10%

The initial price is $30 and the final price is $25. What is the percentage change in price?

• -16.67%

• 5%

• 10%

• 20%

Using the midpoint formula, determine the price elasticity of supply when the initial quantity is 120, the final quantity is 150, the initial price is $15, and the final price is $18.

• 1.25

• 0.25

• 0.625

• 2.5

A good has a price elasticity of supply of 1.5. Is the supply elastic or inelastic?

• inelastic

• perfectly elastic

• unitary elastic

• elastic

Discuss how the concept of price elasticity of supply can be applied to the market for luxury cars.

• Luxury cars have a perfectly inelastic supply

• The price elasticity of supply does not apply to luxury cars

• Luxury cars have a relatively high demand

• Luxury cars are often considered to have a relatively elastic supply.